Measuring Financial Performance Based on CAMEL Rating Model on Islamic Banks in Jordan.

Abstract

The main purpose of this study is to evaluate the performance and soundness of three selected Islamic Banks (Jordan Islamic Bank ،International Islamic Arab Bank, Jordan Dubai Islamic Bank) operating in Jordan during the period 2010- 2015. The study applied the CAMEL rating analysis and it is found that all Islamic banks in Jordan have adequate capital; their assets and earning ability are in the rise despite the slowdown of economy and the rising tide of regional instability. Such information is very important for all stakeholders who are concerned about the soundness of the banking sector, as any negative results of the banking sector may have far reaching effects on the economy of the country.

Keywords: CAMEL Rating Model, Islamic Banks, Jordan